8th edit wajahat final report
Post on 07-Apr-2018
224 Views
Preview:
TRANSCRIPT
-
8/4/2019 8th Edit Wajahat Final Report
1/36
COMSATS Institute of Information Technology,
Sahiwal
High Street Road
Sahiwal
Submitted To:
Ms. Naima Khurshid
Lecturer
Department Of Management Sciences
Submitted By:
Wajahat Hussain
CIIT/SP09-MBA-096/SWL
Submitted on: September 22, 2010
COMSATS Institute of Information Technology
COMSATS ROAD, OFF G.T ROAD SAHIWAL
-
8/4/2019 8th Edit Wajahat Final Report
2/36
Table of contents
EXECUTIVE SUMMARY .................................................................................... 1
CHAPTER 1 ........................................................................................ 2
BACKGROUND OF THE ORGANIZATION ............................................................ 2
1.1.1 FIRSTSTAGE 1942 TO 1973 .................................................... 2
1.1.2 SECONDSTAGE 1974 TO 1991 .................................................. 2
1.1.3 THIRDSTAGE 1991 TO 2004 .................................................... 2
1.1.4 FORTHSTAGE 2005 TO PRESENT................................................. 3
1.2 VISION STATEMENT .................................................................................. 3
TOBECOMEADYNAMICANDEFFICIENTBANKPROVIDINGINTEGRATEDSOLUTIONSINORDER
TOBETHEFIRSTCHOICEFORTHECUSTOMERS. ............................................. 3
1.3 MISSION STATEMENT ............................................................................... 3
1.4 CORE VALUES .......................................................................................... 3
CHAPTER 2 ................................................................................... 4
BUSINESS OPERATION ......................................................................... 4
2.1 ORGANIZATIONAL STRUCTURE......................................................... 5
2.1.1 ABL MANAGEMENT................................................................ 5
2.1.2 STRUCTUREOF ABL ............................................................... 5
2.2 BRANCH NETWORK.................................................................... 6
2.3 BRANCH HISTORY...................................................................... 6
2.4 SWOT ANALYSIS .................................................................... 92.4.1 Strengths ...........................................................................................................9
2.4.2 Weaknesses .....................................................................................................10
2.4.3 Opportunities ...................................................................................................10
2.4.4 Threats ............................................................................................................11
MARKETING STRATEGY.................................................................... 13
2.5.1 MARKETING MIX ................................................................. 13Product ....................................................................................................................14
Price .........................................................................................................................14
Place ........................................................................................................................15
Promotion .................................................................................................................16COMPETITIVE STRATEGY................................................................... 17
2.6.1 ONLINE BRANCHES .............................................................................. 17
2.6.2 T 24 (FULL VERSION) ........................................................................... 17
2.6.3 ATM TERMINALS .................................................................................. 18
BUSINESS PROCESS ANALYSIS............................................................ 19
ACCOUNTS OPENING....................................................................... 20
TYPESOFACCOUNTS....................................................................... 21
CLEARING .............................................................................. 22PAYORDERSAND DEMAND DRAFT....................................................... 24
-
8/4/2019 8th Edit Wajahat Final Report
3/36
PAYMENT ORDER (PO) .................................................................. 25
DEMAND DRAFT (DD) ................................................................................... 25
ONLINE BANKING.......................................................................... 25
ADVANCES................................................................................. 26
NON FUND BASE LOANS................................................................. 27
SUPERVISIONOF CSM (CUSTOMERSERVICE MANAGER) ................................. 27
CHAPTER 3 ................................................................................. 27
LEARNINGASA STUDENT INTERN......................................................... 27
3.1 DUTIES............................................................................... 28
3.2 ACCOMPLISHMENTS .................................................................. 30
3.3 NEW KNOWLEDGE ACQUIRE ........................................................ 30
3.4 RECOMMENDATIONS.................................................................. 30
3.5 HOW
EXPERIENCE
IMPACTS
ON
CAREER
............................................. 31.................................................................... 31
APPENDIX .................................................................................................... 32
-
8/4/2019 8th Edit Wajahat Final Report
4/36
Executive Summary
Internship is a gateway to learn something before entering into practical life and it is
necessary for me because it is a degree requirement of MBA program as well. Allied
Bank was one of the first banks established itself in Pakistan. I joined ABL High
Street Sahiwal for my internship because at present ABL is growing very rapidly and
its aim is to provide a host of new and innovative products and services to its
customers. I believe that this report will provide very important information regarding
my work in various departments (Accounts opening, remittances and credit
department) of Allied Bank. I tried to elaborate all the functions that are performed by
each department of Allied Bank Ltd. In the profile of the bank, I have provided the
possible available information of the Allied Bank Ltd. Firstly the brief history of Allied
Bank Limited accompanied with business operations, management hierarchy and
the facilities offered by the bank to its customers. This internship report is only based
on my personal perception or observation which I gained during my eight weeks
internship. The report also contains information on how ABL crafted and
implemented its marketing strategy. I worked with the Remittance Department where
the general banking operations are performed. In this department all the operations
are performed except advances, foreign exchange etc. the major duties of this
department are to make DD, PO, Online etc. The advances plays very important role
for the banks earning as it is based on different types of loans which the bank is
offering to its customers. The main working in this department is to collect the
information from the client, to be used by bank at different stages. More over the
SWOT analysis is covered in this report to show the position of the bank in the
market.
1
-
8/4/2019 8th Edit Wajahat Final Report
5/36
Chapter 1
Background of the Organization
1.1 Overview
ABL is the first Muslim bank which has been established in Pakistan. It was
established in December 1942 as the Australasia Bank in Lahore with a paid-up
share capital of Rs. 0.12 million under the Chairmanship of Khawaja Bashir Buksh
the Bank attracted deposits equivalent to Rs. 0.431 million in its first two years of
business. The total assets were amounted to Rs. 0.572 million. At presents ABLs
paid up capital and reserves amount is to Rs. 10.5 billion deposits exceed Rs. 143
billion and total assets were equal to Rs. 170 billion.
1.1.1 First stage 1942 to 1973
In the beginning of 1940 the Muslims of the subcontinent realized that they should
take active participation in the field of industry, commerce and trade. The initial
equity of Australasia Bank amounted to Rs 0.12 million
At the end of 1970 Allied bank had 101 branches. Unfortunately it lost 51 branches in
the separation of East Pakistan.
1.1.2 Second stage 1974 to 1991
The year 1974 was very successful year for the bank because profit had exceeded
Rs. 10 million Deposits rise by over 50 percent and approached Rs. 1460 million.
Investments rose by 72 percent and advances exceeded Rs. 1080 million for the first
time in the banking history. A total of 116 new branches were opened during 1974.
1.1.3 Third stage 1991 to 2004
ABL entered into a new phase as a result of privatization in September 1991 and
became the worlds first bank to be owned and managed by its employees. ABL had
a huge capital and reserves as its assets. The Bank enjoyed a lucky position in
Pakistans financial sector and was recognized as one of the best amongst the major
banks of the country.
2
-
8/4/2019 8th Edit Wajahat Final Report
6/36
1.1.4 Forth stage 2005 to Present
Now the bank has the largest network of online branches in Pakistan and offers
various technology based products and services to its customers through its network
of more than 784 branches. The last year profit of ABL turned out to be 7 hundredmillion; it was higher as compare to others banks. 1
1.2 Vision Statement
To become a dynamic and efficient bank providing integrated solutions in order to be
the first choice for the customers.2
1.3 Mission Statement
o To provide value added services to the customers
o To provide high tech innovative solutions to meet customers requirements
o To provide a challenging work environment and reward dedicated team
members according to their abilities and performance.
o To play a proactive role in the society.3
1.4 Core Valueso Integrity
o Excellence in Service
o High Performance
o Innovation and Growth
ABL has this firm belief that human resource is the biggest assets of anyorganization. Proper training can increase the employee ability. Audit report of any
employee is also considerable in this assessment.
11 history [Online] // Allied bank. - june 20, 2010. -
http://www.abl.com/thebank/history.asp.
2 vision [Online] // Allied bank. - june 25, 2010. -
http://www.abl.com/thebank/default.asp.
3
mission statement [Online] // Allied bank. - june 25, 2010. -http://www.abl.com/thebank/default.asp.
3
-
8/4/2019 8th Edit Wajahat Final Report
7/36
Now a days job satisfaction is a major issue in every organization.ABL Management
takes special steps to increase the job satisfaction of its employees. Management of
ABL also gives much importance to its employees and makes work environment
comfortable for its employees. 4
Chapter 2
Business Operation
4
core value [Online] // Allied bank. - june 25, 2010. -http://www.abl.com/thebank/default.asp.
4
-
8/4/2019 8th Edit Wajahat Final Report
8/36
2.1 Organizational Structure
It is a proper arrangement of jobs within an organization. When higher authority
develops or changes the structure they are engaged in organizational design.
2.1.1 ABL Management
Globally speaking; banks are managed by BOD who are responsible to the govt,
creditors, owners. and the obligations of the bank for the betterment and the
happiness of their institution. All the directors of ABL or some of them are chosen by
the government. A few or all directions working at ABL are recruited by government.
In the management of ABL there are many committees involved; which perform
different functions like BOD, Audit Committee, Auditors, Management, HumanCapital Committee and many others are involved.
2.1.2 Structure of ABL
The employees of ABL are operating its operation efficiently and effectively. Every
employee should know little bit about his work. And these things which an employee
should know that are as under
o What they should do after receiving the work from anyone?
o How they are supposed to handle the operation and how employee can do it
better ?
o When they are supposed to perform it
o To whom it will be given after finishing the work
Allied bank has its Head Office in Karachi to perform its working efficiently which iscontrolled by the President of the Bank. ABL has different regional offices in the
major areas of Pakistan which comes under the Head Office. And the head of this
Region is known as Regional Chief Head. Every province has its own regional office
and zonal offices.
5
-
8/4/2019 8th Edit Wajahat Final Report
9/36
2.2 Branch Network
There is a wide branch network of ABL in the country; now ABL has 784 branches
and till 2011 they want to increase their branches up to more than 800. The old
branches are reconstructed into new ones.
2.3 Branch History
The Allied bank limited, High Street Sahiwal branch was established in 1948. It was
the first branch of ABL in this city. For sixty two years the name of the bank was
Australasia Bank. In the very beginning the bank, it offered a small product line and
with the passage of time the product line increased. The first ATM terminal was
installed in this branch of Sahiwal. Foreign exchange department is situated only in
this branch in Sahiwal region.5
5 branch history [Interview] / interv. Hussain ajmal. - sahiwal : [s.n.], 08 25, 20106
-
8/4/2019 8th Edit Wajahat Final Report
10/36
Chairman
Board of Directors
Group Chief
Regional Chief
Zonal Chief
BranchManager
Customer Services
Manager
MG Officers
(Branch)
ABL Hierarchy 6
Figure 2.1
Branch Hierarchy7
6 management [Book] / auth. robbins s,p. - [s.l.] : pearson education, 2007. - 9 : p.
266.
7
-
8/4/2019 8th Edit Wajahat Final Report
11/36
Figure 2.2
7 management [Book] / auth. robbins s,p. - [s.l.] : pearson education, 2007. - 9 : p.
266
8
-
8/4/2019 8th Edit Wajahat Final Report
12/36
2.4 SWOT Analysis
In SWOT analysis I will discuss the Strengths, Weakness, Opportunities and Threats
of the organization and also the branch where I did my internship. The SWOT
analysis is as under
2.4.1 Strengths
1. Excellent Customer Services
Employees at ABL one of the best in term of competency, relevant experience
professionalism are especially I observed in High street branch that they know their
clients and customers discuss their problems. The customer services officers give
suggestion in very friendly environment. It is more important to retain existingcustomers rather than acquiring new one.
2. Strong Financial Position
The financials position of ABL is improves every year I discussed it in strengths
because last year when all the banks were in loss at that time ABL was only whose
profit was 7 million.8
3. Fully Online Branch Network
In Pakistan all the branches of ABL are facilitating their clients online facility. There
is no bank whose all branches are performing this job. Other banks branches who
are working in rural area mostly are not online branches.
4. Latest Banking Software (T24)
ABL has introduced the full version of new software that is known T24 which perform
all the banking operations and High Street Branch also uses this software. Some
other banks are using T24 but they are not using the full version of T24. This
strength provides less paper work facility to ABL.
8 last year profit [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26, 2010.9
-
8/4/2019 8th Edit Wajahat Final Report
13/36
2.4.2 Weaknesses
1. Inequal Distribution of Work
I observed during my internship that some employees are over with burdened work
at ABL. So my opinion work should circulate according to their position. Every one
should perform their duties with honesty and full with devotion. My on site supervisor
left the office after eight in the evening but other staff left five in the evening. This is
an unequal distribution of work.
2. No Work Specialization
During my internship at ABL High Street Sahiwal branch; I also visited some of its
other branches in sahiwal. During such visits I observed that the employees working
in certain capacity do not possess the specialized skill in that area, For instance; one
of the co-workers Ms. Sidra working in the capacity of incharge advances used to
book after the online transactions department , as well in the absence of its incharge.
3. Absence of proper seating facilities for Customers
In the bank branch; there is lake of proper seating facilities for customers. As
consequence customers have to stand in long time wait for their tern. This leaves a
very bad impression on the customers mind. As it is said customer is good in
marketing. Therefore clients should be the first priority no matter what the situation
is.
2.4.3 Opportunities
1. Capitalize on IT for Future Growth
Each and every opportunity of this century can easily avail through information
technology. Therefore Allied Bank can also emphasize more on IT especially the E
Banking. Bank can design a universal account like other foreign banks, to enhance
online facilities. Government is taking very bold steps to promote IT in Pakistan. ABL
also has an opportunity to enhance growth adapting itself more flexibility towards IT.
10
-
8/4/2019 8th Edit Wajahat Final Report
14/36
2. Extension of Accounts Network
Allied Bank growing business requires an extensive accounts network. There are
great opportunities for Allied Bank for the expansion of its business. Recently ABL
start a new product rising star for below the 18 years.
3. Target middle and low class
Low and middle class income group has little access to the banks, so I think these
classes should be the target and can be the opportunity for the Allied Bank Ltd. 9
4. Launch Innovative Products and Services
ABL has a very large network of branches Pakistan. If management launchesinnovative products and modern instruments in these areas then this bank can
become the biggest and most efficient bank of Pakistan.
2.4.4 Threats
1. Competitors
ABL is facing a strong competition by its major competitors; Askari commercial bank
and Habib Bank. Business of these banks is also growing with very high speed.
2. Instable Political Situation
ABL has been performing very outstanding in unstable political and economic
situation, but this uncertainty of law and order or bad policies of the govt is a
continuous threat for every bank. The laws are changing every day and also
instability of the government is increasing.The political influence affects the
performance of bank very badly. Most of the loans become bed debts due to politicalpressure.
3. Increased numbers of Banks
9
target new market [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26,2010.
11
-
8/4/2019 8th Edit Wajahat Final Report
15/36
Increase in number of banks is a threat for ABL. Numbers of private banks
(commercial & private) are opening their business and provide the same facilities.
They are continuously increasing their products and marketing aggressively so it is a
threat for UBL that may cause its customers to shift to competitors.
Conclusion
SWOT analysis of the bank is showing that its strengths overcome its weaknesses
and its opportunities are more as compared to its threats. It is a positive sign for any
organization which provide services to customers.
Recommendations
In my observation the main problem for ABL is its middle management which is not
active in solving the problems of their employees and does not take initiatives for the
solutions to meet the complaints of the clients. But it is anticipated that the newly
hired employees have ability to change the current environment.
12
-
8/4/2019 8th Edit Wajahat Final Report
16/36
Marketing Strategy
Marketing plays very important role in the successful operation of any business.
Today every business depends on effective marketing. The main thing is to attractthe customer and a marketer can attract the customers through different types of
promotion.
Allied Bank is targeting the customers according to the nature of its products. Each
and every person is the target of the bank because bank provides services according
to your status. Allied Business Account is targeting the upper class or corporate level
persons and Saving Account is targeting the middle class peoples.
According to my opinion ABL has very bad positioning in customers mind. The bank
is offering good products as compared to other banks but not providing better
services to customers. Because their infrastructure is bad they are using T24 full
version banking software but they have no trained employees.
Branding is related with products and services. ABL developed its name step by step
very efficiently because banks have 100 percent online branches and 350 ATM
terminals in all over the Pakistan. Any other banks can not claim these qualities.10
2.5.1 Marketing Mix
1. Product
2. price
3. Place
4. promotion
10 Marketing strategy [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26,
2010.
13
-
8/4/2019 8th Edit Wajahat Final Report
17/36
Product
The following is the list of product line of Allied bank
o Internet banking
o Online banking
o ATM network
o Deposit accounts
o Agriculture
o Corporate Leasing
Corporate banking
o Project finance
o Long term financing
o Short term finance
o Trade finance
Price
Allied Bank limited uses the penetrating pricing strategy for its products. Because
Allied Bank deducts the 50 rupee for those who have the deposited below 10,000.
While other banks charge 100 rupees. And their limit is 25,000. And their initial
deposit is also lowest in the banking sector (500). Allied bank opens account with the
initial deposit of 500. By offering low charges the allied bank attracts the new
customers.
14
-
8/4/2019 8th Edit Wajahat Final Report
18/36
Place
The Allied Bank limited has the strategy to cover the maximum area for its
customers; so thats why they have a strategy to cover the business area as well as
residential area. ABL is using penetration strategy, In sahiwal bank has eightbranches.
Figure 2.3 11
11 place [Online] // Allied bank. - september 18, 2010. -
http://upload.wikimedia.org/wikipedia/en/1/1e/Allied_Bank_Branches_in_Pakistan.JPG.
15
http://upload.wikimedia.org/wikipedia/en/1/1e/Allied_Bank_Branches_in_Pakistan.JPG -
8/4/2019 8th Edit Wajahat Final Report
19/36
Promotion
Push strategy
Allied bank uses the push strategy for the sale of its credit cards because the bank
give incentives and commission to the sales agent for the sale of their card.
Pull strategy
Allied bank also use pull strategy for the promotion because the use the
advertisement in print and electronic media as well for their promotion.
Public Relation
ABL is using Public Relation to create a good brand name among all its stakeholders
in market. PR is very necessary and useful tool for bank and as well as for the
employees in banking sector, because every employee has to bring 10 to 15
accounts where it is working. If employee has good PR then he will not face much
problem in bringing number of accounts.
The success of ABL depends on PR. Public also trust on it and like to built relations
with ABL because the bank provides a platform of good social interaction with the
various stakeholders such as govt, media, customers, competitors etc.12
12 Marketing Mix [Interview] / interv. fahad Muhamad. - sahiwal : [s.n.], 08 26, 2010.16
-
8/4/2019 8th Edit Wajahat Final Report
20/36
Competitive Strategy
No bank can run its operations without using the latest technology and provide the
highest level of satisfaction to its customers. Today it is the time of competition andeveryone is trying to compete with others so one can survive in the market. Today
profit earning is not only the objective of any organization but also they have to
provide extra facilities to their customers to retain their market share. As we know
that competitors always a threat for an organization so Allied bank has many
competitors in the sector.
Now we will discuss the competitive edges of ABL which it has over competitors and
providing a better facility to its customers.
2.6.1 Online Branches
ABL has the wide network of 784 real time online branches which are facilitating their
customers the transfer amount from one branch to other branch and from one city to
other city. No bank has 784 real time online branches. With the introducing of new
branch ABL provides the online facility there is no branch of ABL in Pakistan which is
not providing the facility of online. This is a big edge over its competitors and this
creates a trust and goodwill. Any other bank can not claim this facility because in
village area branches are not fully online.
2.6.2 T 24 (Full version)
T 24 is banking software, with the help of this software the paper work will minimize.
The work will be centralized means employee will free from bank early most of the
work will be automated. Within a one year all the branches of ABL will start this
software. Now days some branches of ABL is using T 24. Some banks are using T
24 like Standard Chartered but it is not using the full version of this. But ABL is first
bank which is introducing the full version of T24.
This is the biggest edge that ABL has over its competitors.
17
-
8/4/2019 8th Edit Wajahat Final Report
21/36
2.6.3 ATM Terminals
No bank has 350 ATM terminals all over Pakistan except Allied Bank of Pakistan
limited. They are facilitating their customer in every city of Pakistan. Today people
are using ATM cards and they carry less cash, with ATM everyone can withdraw
amount from every where ATM terminals are available. Habib bank has above 1400
branches in all over the country but only have 325 ATM terminals in the country.
Standard chartered bank has above 200 ATM terminals in all over the Pakistan. 13
13
ATM location [Online] // Standrad chartared bank. - 2010. - 8 24, 2010. -http://www.standardchartered.com/pk/personal/ways-to-bank/en/atm-locations.html.
18
-
8/4/2019 8th Edit Wajahat Final Report
22/36
Business Process Analysis
After working in ABL I did the following business process analysis. Major operations
of the bank are given is following diagrammatic presentation.
Figure 2.4
19
Supervision
of All work
1. Account Opening
2. Clearing
3. Demand Draft and
pay order
4. Online banking
5. Advances
-
8/4/2019 8th Edit Wajahat Final Report
23/36
Accounts Opening
Figure 2.5
20
Customer Comes to
Account Opening Dept
Issue Account opening form
Filled form under the
supervision of employee
Record in bank system
Issue bank account to
customer after the verification
of all authorities
Customer
request for
opening bank
account
Customer
Provide all
requirements
Original NIC card and
CNIC
CNIC next of
kin
Business proof
In case of job provide
job certificate
Signature of person
Initial deposit
-
8/4/2019 8th Edit Wajahat Final Report
24/36
In the past when a person comes in bank for opening an account then there was no
difficulty for a banker and customer for opening an account but now days it is
becoming difficult for bankers and also for a customers. On parallel grounds; it is
good for security purpose bank demands lot of things from their customer. But it is
the requirement of SBP that any one who wants to open account will provide these
things which we the bank demand. If customer does not provide the required data
then the account cannot be opened in the bank.
Types of accounts
Some accounts that used in a bank normally.
o Current Account
o Saving Account
o Term Deposit Account
o Foreign Currency Account
o Business Account
o Staff Account 14
14 Account opening [Interview] / interv. Asif Muhammad. - sahiwal : [s.n.], june 17,2010
21
-
8/4/2019 8th Edit Wajahat Final Report
25/36
CLEARING
Figure 2.6
It is the transfer of funds from one branch of bank to the other branch of the same
bank or the other bank on which the instrument is drawn, without involving cash
through State banks clearing house. The procedure of clearing is facilitated by NIFT
(NATIONAL INSTITUTION OF FACILITATION TECHNOLOGIES). The clearing
procedure requires 2 days for completion.
Clearing Has Two Types
o Outward clearing
o Inward clearing
22
Bank employee verified date
validity
Customer slip
Issues recede
Endorsement
NIFT
-
8/4/2019 8th Edit Wajahat Final Report
26/36
Figure 2.7
I. Outward Clearing
It means the cheques which the bank received from our customers of other localbanks. The ABL facilitate its account holder to collect money from other banks
and these cheques are also sent through NIFT.
The same procedure is like inward clearing. In inward clearing we check stamps
and in outward clearing we stamp on the instruments of Cross Clearing and
Endorsement or Payee's Account. This is favorable for the bank.
II. Inward Clearing
It means the bank customers cheque, DD, PO, and any other type of instruments
which it received from other local banks (Sahiwal Region) is called Inward Clearing.
These cheques are sent by local banks through NIFT (National Institute of
Facilitation Technology). NIFT works as middle man on behalf of other banks. The
bank which receives cheques sees the Crossing and Clearing Stamps of sender
bank on the front side of the instrument and the stamp "Payees Account will be
credited on Realization" or Disbursement stamp on the back side of the instrument
should be stamped.
Inward clearing is unfavorable for the bank because it means to transfer money to
another branch or bank. Debit the customer account and Credit the NIFT.15
15 clearing [Interview] / interv. Ejaz najma. - sahiwal : [s.n.], july 12, 2010.
23
Inward
clearing
Outward
clearing
Clearing
-
8/4/2019 8th Edit Wajahat Final Report
27/36
Pay Orders and Demand Draft
Figure 2.8
24
Dept. fills thefunds transfer
application
PO or DD is
prepared by the
employee
PO or DD is signed
by the authorized
employee
PO or DD is given to
customer
Requests for preparing PO or DD
Customer provides
cash or cheque
Charges are
taken from
customer
Customer Comes to
Remittance Dept.
Demand
draft
With in the
city
Pay
order
Use out of
city
Enter in
DD
register
Voucher of
charges
Enter in
PO
register
Voucher of
charges
-
8/4/2019 8th Edit Wajahat Final Report
28/36
Payment Order (PO)
The other name of pay order is bank cheque.When some wants to pay another party
or person within a city then payment order is used. PO is used for security purpose
and it is drawn on the same bank which made PO. The account holder of bank tomakes PO of transfer not cash and walk in customer on cash because cash charges
are more.
Demand Draft (DD)
DD is also used to make payment by a person to another person in another city. DD
is made on the same lines as PO although the application form of DD is different. DD
is always drawn on another city and any branch of ABL.16
Online Banking
Figure 2.9
16 PO,DD [Interview] / interv. Ejaz najma. - sahiwal : [s.n.], june 23, 2010.25
OnlineBanking
Remount
Account
Title
Applicant
name
Applicant
Address
RemountAccount NO.
Original ID card
And copy
Remount
Branch
-
8/4/2019 8th Edit Wajahat Final Report
29/36
Now there is time of Online not Courier etc. because Online takes seconds not hours
thats why customers preferring this. ABL Online Banking is a unique service being
offered from Allied Bank.
ABL cheque drawn from a remote branch for credit into a beneficiary account of a
specified amount can also be presented by a third person at any branch. Corporate
customers requiring fund collections can use it for cash management services.17
Advances
Figure 2.10
Purpose of Credit
17 online [Interview] / interv. Hussain tahir. - sahiwal : [s.n.], july 27, 2010.26
Advances
Long TermLoans
Short TermLoans
Lease Facility for
Car
For
Machinery
Cash
Finance
Running
finance
-
8/4/2019 8th Edit Wajahat Final Report
30/36
All earnings of a bank are depended on CREDITS because
o A bank receives (borrows) deposits. It pays cost on these deposits.
o
On the other hand bank lends the deposits to borrowers and charges intereston the lending. This function is performed by CREDITS in any bank.
Advances
Different banks provide loan facility to general public, companies etc. but ABL
provides two types of loans that are as under:
o Non Fund Base Loans
o Fund Base Loans
Non Fund Base Loans
In non fund based loans cash is not directly involved but bank gives guarantee on
the behalf of customer. Bank works as a third party and known as Guarantor. Bank
provides a security to customer when he needs and someone requires from the
customer.
Fund Base Loans
In this type of loans cash is directly involved. Bank provides loans in shape of cash.
Bank gives credit or limit facility to customers that needed it. 18
Supervision of CSM (customer service Manager)
Without the supervision of CSM ever work of bank is incomplete in branch.There is a
proper system to check and balance the employees performance. It is the duty ofCustomer service manager to check the employees duties that they performed well
that every employees given desire result.19
Chapter 3
Learning as a Student Intern
18 Advanceses [Interview] / interv. Ghazali Sidra. - sahiwal : [s.n.], july 27, 2010.19 supervisio [Interview] / interv. khan Usman anjum. - sahiwal : [s.n.], 8 22, 2010
27
-
8/4/2019 8th Edit Wajahat Final Report
31/36
Internship is a way of learning and it is also the degree requirement of MBA program.
So every student has to do this with full devotion and discipline. I decided to do
internship in ABL High Street Sahiwal because it is a renowned bank in Pakistan. I
learnt a lot there with the guidance from my professional seniors and colleagues.
The basic purpose of doing internship at ABL was is that due to its operations and its
financial strength. It stands as one of the leading bank of the country.
3.1 Duties
I worked with the Remittance Department where the general banking
operations are performed. I worked for two weeks in remittance
department. In this department all the operations are performed except
advances, foreign exchange etc. the major duties of this department are to
make DD, PO, etc.
o Filled Inward Clearing Slip (Debit and Credit Vouchers)
o Filled Current Account Deposit Slip
o Filled Profit & Loss Sharing Saving Account Deposit Slip
o Filled Demand Draft Form
o Filled Pay Order Slip
o Filled vouchers of Pay Order (Transfer Vouchers Yellow Color)
o Filled voucher of Pay Order (For Cash Purpose Light Green Color)
o Filled Advices for fund transfer of Govt. to different Schools
I joined bills department. In this department the major working is to collect the
cheques from their customers and customers cheque for collection and payment
purposes.
3.1.1 Clearing Department
o Outward Bills for Collection (OBC)
o Inward Bills for Collection (IBC)
28
-
8/4/2019 8th Edit Wajahat Final Report
32/36
o Inward Clearing
o Outward Clearing
o
Filled the form Know Your Customer (KYC) for online purposes
Advances plays very important role for the banks earning. I learnt different
types of loans which bank is offering to the customers. The main working in
this department is to collect the information of the client, and the information
which bank needs is written above in Advances Department. But the advance
which bank provides is as under.
3.1.2 Fund Base Loans
o Long Term Loans
o Lease facility for car
o For Machinery
o For Fixed Assets
o Short Term Loans
o Running Finance (R/F)
o Cash Finance (C/F)
Securities for fund base loans
o Mortgage
o Hypothecation of Stock
3.1.3 Non Fund Base Loans
Securities for fund base loans
o Mortgage
o Hypothecation of Stock
o Pledge
29
-
8/4/2019 8th Edit Wajahat Final Report
33/36
3.2 Accomplishments
The manager assigned me the task dealing with those cheque books which remains
with the bank for last 90 days. I made the phone calls to the customers to take their
cheque books and I wrote the letters to those customers who did not collect their
cheque books from last 90 days. I really completed my target because of this effort
most of the people came and took their cheque books from the bank.
3.3 New Knowledge Acquire
In ABL I learnt so many things and all the knowledge was new for me which I
acquired. The main thing which I learnt was customer dealing, and how its problems
can be handled. In bank all the importance is given to customer and customerservices officer should never say "No" to customer.
Besides this I understood the operations of the bank one has to know practical
application of all the operation. The biggest advantage of practical working is that I
gained lot of confidence because in banks there is restriction of cutting and everyone
works carefully and the staff trusts on me and gave me some confidential documents
for filling. It really boosts up my morale and confidence.
3.4 Recommendations
In every organization there are some problems which employees or internees have
to endure. During my internship following are some observations and suggestions.
o When bank grants loans to customers then it does not check the customers
information properly. Bank must carefully analyze the past six months
transaction history of the borrower. This will help in judging the dealing behavior
and financial status of the client. In most cases this thing is not properly done
and it is the major reason of default of many clients.
o The Bank should have the moving cameras in their branches for security
purposes.
o The Bank should try to give more loans to the small borrowers as the past history
shows that most of the loans given to the corporate borrowers have converted
into bad debts.
30
-
8/4/2019 8th Edit Wajahat Final Report
34/36
o The Bank has a lot of financing schemes but there is very little advertisement of
these schemes. So Bank should increase its advertisement.
o When any one comes to operate the lockers then the things which he keeps in
locker should be checked through metal detector for security purposes.
o In High Street of ABL hundreds customers come for getting facility but for the
sitting of customers there are few chairs and customers have to wait for sit.
3.5 How Experience Impacts on Career
As it is said with learning comes experience. Therefore I can very well put forward
here that my internship was an eye-openers to me towards the practical side of my
degree. Through my internship experience; I have gained tremendous confidence in
handling clients and day to day work pressure. Since my aim is very much consistent
with my internship; therefore my learning would help me in my professional life
experience after the completion of my degree. ABL will help me find a suitable; yet
lucrative job opportunity in the banking sector. Along with this; I have become more
mature in my learning and have learned the value of time.
31
-
8/4/2019 8th Edit Wajahat Final Report
35/36
Appendix
Debit Voucher
Credit Voucher
32
-
8/4/2019 8th Edit Wajahat Final Report
36/36
Slips
top related